Manufacturing Efficiency

In order to maximize cost saving benefits in high volume automation manufacturing it is critical to integrate manufacturability and assembly of components into the product development process. Many companies have different requirements in terms of their manufacturing process such as A) controlling the manufacturing process and supply chain B) outsourcing the manufacturing and supply chain to a contract manufacturer or C) a hybrid of both. However, for an emerging company my experience is that it is financially and operationally more efficient to outsource manufacturing and supply chain to a reputable contractor. The right contract manufacturer can help significantly reduce capex expenditure and utilize their own well established supply chain to achieve product unit cost efficiencies.